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Direct Loan Information

SNHU participates in the William D. Ford Federal Direct Loan Program. Direct federal loans are fixed-rate student loans for undergraduate and graduate students attending college at least half-time. Federal loans are the most common type of financial aid to assist with paying for school.

Federal Loans are available to all students who submit a FAFSA. Please review your SNHU Financial Aid award letter for the amounts you qualify for. For more information on terms and interest rates, please visit the Federal Student Aid website.

Direct Loan Borrowers

First-time Direct Loan borrowers must complete the following requirements before a loan disbursement will be applied to his/her student account:

Complete Entrance Counseling which helps you understand your rights and responsibilities as a borrower and provides information and terms of Direct Loans.

Complete the Master Promissory Note (MPN) which is a legal document in which you promise to repay your loan(s) and any accrued interest and fees. It also explains the terms and conditions of the loan(s). SNHU uses the multi-year MPN which means students can borrow additional Direct Loans on a single MPN for up to ten years.

Award amounts are based on cumulative credits earned toward a specific degree program. Annual borrowing limits for dependent undergraduates are $5,500 for freshman (zero to 29 credits), $6,500 for sophomores (30-59 credits), and $7,500 for juniors and seniors (60 or more credits). Independent undergraduate students can borrow an additional Unsubsidized Direct loan of $4,000 in their freshman and sophomore years and up to $5,000 in both their junior and senior years. Graduate students can borrow up to $20,500 each year.

Repayment for Federal Direct Loans begins six months after you graduate, withdraw, stop attending, or your enrollment status is less than half-time. The standard repayment term is ten years and the interest rate may vary depending on the type of Direct Loan and the disbursement date.

Direct Loan Instructions:

Students are required to sign a Master Promissory Note (MPN) and complete online Entrance Loan Counseling (ELC) before receiving a Direct loan.

After you receive your award letter, you may find that you do not need all of the loans you qualify for to cover the current years tuition and expenses. To reduce future loan debt you may cancel these amounts by writing a statement indicating the amount you wish to cancel or reduce. Sign it and mail, fax or upload the statement to the Financial Aid Dropbox.

Additional Information

Subsidized vs. Unsubsidized Loans: What is the difference?

Subsidized Direct Loans are awarded based on financial need. With a subsidized loan, such as the Perkins Loan or the Subsidized Direct Loan, the government pays the interest on the loan while the student is in school, during the six-month (or nine month for the Perkins Loan)grace period and during any deferment periods.

Unsubsidized Direct Loans is loan for which interest is not paid by the government. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed, even while the student is still in school. Students may avoid paying the interest while they are in school by capitalizing the interest, which increases the payoff amount of the loan.

Lifetime borrowing limits

When you graduate with a graduate or professional degree, the maximum total debt allowed from Direct Loans is $138,500. No more than $65,500 of this amount may be in subsidized loans. This maximum total graduate debt limit includes Direct Loans received for undergraduate study. These amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized Direct loans. The current interest rate, established by the federal government, varies but will not exceed 8.25 percent.

You can view the total amount you have borrowed in federal loans at studentloans.gov.

Repay your Loans

After you graduate, drop to a less than half time status, or are no longer enrolled in a degree seeking program, repayment will begin after your six month deferment period ends. Visit studentloans.gov to learn more about the payment plans, payment deferment, and payment forbearance options that are available to you.

Loan Servicer

A loan servicer is a company that handles the billing and other services on your federal student loan. Your loan is assigned to a loan servicer by the U.S. Department of Education after your entire loan amount is disbursed (paid out). The loan servicer will work with you on repayment plans and loan consolidation and will assist you with other tasks related to your federal student loan. It is important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help. For more information about loan servicers, visit the Federal Student Aid Site.